Q: I have a great idea for an amazing new product.
There is nothing like it on the market and no competition
that I can find. I think it will be a huge success and so
does everyone I tell the idea to. I'm willing to bet the farm
on this one. What do you think my chances of success are?
A: I'm a lousy poker player, mainly because I can't
help grinning like the village idiot when blessed with a winning
hand or frowning like a sad clown when dealt a dud.
I also never make odds on the success of "amazing new
products" because more often than not the only thing
that's amazing is the way the product is totally ignored by
the buying public. In my software business there have been
times when we came up with what we thought was an amazing
idea for an amazing piece of software - a piece of software
so amazing, in fact, that we knew that all mankind would sit
up and take notice, then line up to write us checks.
After hundreds of hours and thousands of dollars spent developing
the product we were amazed to find that the only people who
thought the software was truly amazing was us.
We made mankind yawn. Quite an amazing accomplishment, if
i do say so myself.
It worries me that you say there is nothing like your idea
on the market. While you may think that is a good thing, it
might actually mean that there is no market for your product.
The same holds true for a lack of competition. A total lack
of competition might mean that there is no demand for such a
product.
Rarely does a product come along that revolutionizes an industry.
Rarer still does a product create a new industry on its own.
So, how can you tell if your amazing new product really is
worth gambling on? the truth is, you can never be 100% certain
that your idea will sell. No matter how enamored you are of
it or how much your friends rave about it, the success of
a new idea depends on a number of factors, many of which are
beyond your control.
Such factors include:
The viability of the idea: is this really a product that
you could build a company around? Does the idea have the
potential to generate revenue or customer loyalty? ·
The people implementing the idea: the right team can make
even a mediocre product a huge success (ever heard of Windows).
Inversely, a bad team couldn't sell ice water in Hades.
Pick your team carefully. The right people really do make
all the difference.
The demand for such a product in the marketplace: will
this product fill a need or satisfy an itch? · The
competition: is the market already crowded with competitors?
If so, what will it take to move your product ahead of the
pack? · The depth of your pockets: even an amazing
product requires a ton of cash to go from drawing board
to store shelf. · The availability ofother resources
required to take the product from the drawing board to the
consumer: do you have the time, the drive, the perseverance,
the knowledge, the contacts, the support, and a hundred
other things required to bring your amazing idea to fruition?
· The list wouldn't be complete without sheer luck
and timing. · And a thousand other things.
Before you invest too much time and money into your idea,
do a little research to determine if it's an idea that's
really worth gambling on:
Research the market for similar products. Again, if there
are no similar products on the market that might mean there
is no market for that product. If there truly is nothing
exactly like your product, research similar products that
fill a similar voidin the consumer's life. Learn all you
can about such products pricing, market share, track record,
etc. · Research the competition. As mentioned earlier,
if there is no competition there may not be a market for
a product like yours. If there is competition, research
the competition fully (little guys and big guys) to help
determine if you can realistically compete for market share.
Identify your target customer and ask them for an honest
evaluation of the idea and its marketability. Avoid friends
and family as they usually just tell you what you want to
hear. If your target customer is a 35 year old female, pitch
your idea to every 35 year old female you meet and gauge
their response. Just don't break any stalking laws in the
name of market research.
The best advice I can give you when it comes to amazing
new product ideas it's best to follow your head and not
your heart. It's a lesson that took me years to learn. If
I had a nickel for every amazing new product I've invested
in I'd go play a few hands of poker.
